Dow Slides Over 400 Points as Hot PPI Data Fuels Fed Rate-Hike Fears

The Wall Street 30 tumbled more than 400 points on May 13 afternoon amid a broad selloff after hotter-than-expected US PPI data revived fears of sustained high Fed rates. Futures were flat late May 12 as markets awaited CPI at 8:30 AM ET (forecast +0.3% headline/core m/m, +3.1%/+3.7% y/y), which printed strong, followed by steady early May 13 trading ahead of PPI expected at +0.3% headline and +0.2% core m/m. Actual PPI rose 0.4% m/m (vs. consensus), +3.1% headline y/y and +2.8% core y/y, spiking 10-year yields 12 bps to 4.38% and cutting March rate-cut odds below 30% from prior 60%.